Pakistan has formally launched its cryptocurrency regulatory regime, with the Pakistan Virtual Assets Regulatory Authority, or PVARA, requiring digital asset companies to submit applications for a no-objection certificate by Sept. 5 or halt operations. The move puts the country’s new licensing framework into effect under the Virtual Assets Act 2026.
PVARA said licensed entities will be required to meet strict operating and security standards. Those standards include safeguarding client funds, maintaining sound cybersecurity, providing clear disclosures, and ensuring transparent business practices. The licensing rules cover 11 categories of crypto-related activity, including custody, trading platforms, broker-dealers, and derivatives.
The launch follows an earlier policy shift in April, when the State Bank of Pakistan lifted a ban that had prevented financial institutions from offering banking services to crypto companies. Even so, banks themselves are still barred from investing in, trading, or holding crypto assets. Pakistan had maintained a restrictive stance toward crypto for years, and the new framework shows a move away from outright restriction and toward regulated oversight within anti-money laundering and consumer protection rules.
Pakistan has officially rolled out its cryptocurrency regulatory regime, BlockBeats reported. The Pakistan Virtual Assets Regulatory Authority (PVARA) said digital asset firms have until Sept. 5 to file applications for a no-objection certificate — or they must stop operating.
PVARA said licensed institutions will be required to meet tight operational and security standards. That means protecting client funds, keeping cybersecurity defenses strong, giving clear disclosures, and making sure business practices are transparent.
Licensing rules cover 11 categories
The licensing framework was introduced under Pakistan’s Virtual Assets Act 2026. It covers 11 categories of crypto-related activity, including custody, trading platforms, broker-dealers, and derivatives.
Banking services ban was lifted in April
Before this, the State Bank of Pakistan lifted its ban in April on financial institutions offering banking services to crypto companies. But banks themselves still cannot invest in, trade, or hold crypto assets.
Policy stance shifts from restriction to regulation
Pakistan had kept a restrictive stance on cryptocurrencies for years. Now the new regulatory framework signals a policy shift — away from restriction and toward formal regulation — as authorities move to bring the crypto sector into the formal financial system under anti-money laundering and consumer protection rules.
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